Correlation Between CEZ As and Logintrade

Can any of the company-specific risk be diversified away by investing in both CEZ As and Logintrade at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CEZ As and Logintrade into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CEZ as and Logintrade SA, you can compare the effects of market volatilities on CEZ As and Logintrade and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CEZ As with a short position of Logintrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEZ As and Logintrade.

Diversification Opportunities for CEZ As and Logintrade

0.17

Correlation Coefficient

CEZ As  Logintrade

Average diversification

The 3 months correlation between CEZ and Logintrade is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding CEZ as and Logintrade SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logintrade SA and CEZ As is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CEZ as are associated (or correlated) with Logintrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logintrade SA has no effect on the direction of CEZ As i.e., CEZ As and Logintrade go up and down completely randomly.

Pair Corralation between CEZ As and Logintrade

Assuming the 90 days trading horizon CEZ as is expected to generate 0.39 times more return on investment than Logintrade. However, CEZ as is 2.56 times less risky than Logintrade. It trades about 0.12 of its potential returns per unit of risk. Logintrade SA is currently generating about -0.06 per unit of risk. If you would invest  16,500  in CEZ as on December 31, 2024 and sell it today you would earn a total of  2,380  from holding CEZ as or generate 14.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	48.39%
Values	Daily Returns

CEZ as  vs.  Logintrade SA

CEZ as

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CEZ as are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, CEZ As reported solid returns over the last few months and may actually be approaching a breakup point.

Logintrade SA

Risk-Adjusted Performance

Insignificant

Over the last 90 days Logintrade SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in May 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with CEZ As and Logintrade

The main advantage of trading using opposite CEZ As and Logintrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEZ As position performs unexpectedly, Logintrade can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Logintrade will offset losses from the drop in Logintrade's long position.

The idea behind CEZ as and Logintrade SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.